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https://www.forbes.com/pictures/mhj4...troduction-54/
Undervalued Definition:
"....if homes are trading for prices lower than the local economy can sustain, then housing is undervalued. "
This can be read either way. Either Detroit is depressed, for whatever reason, or there's opportunity to be had. IMO, the combination of relatively low housing prices and upward momentum suggests low risk from an investment standpoint.
Do you think one of the reasons for Detroit's rock bottom real estate prices might be related to the following? --
https://www.forbes.com/pictures/mlj4.../#fe8dc6469d9f.
Detroit housing is the cheapest of any big city in the country. Where else can you purchase a home for the price of a new car. This recent Crain's article helps detail the unique problems of the Detroit housing market:
https://www.marketplace.org/2016/09/...-neighborhoods.
Until the city solves its many problems, few lenders will take the risk of financing homes in Detroit.
Also, the local/state economy isn't necessarily doing back flips either. Most of the jobs that are being created are low wage service/temp jobs, and the Auto Industry has stopped most of its hiring and is even beginning to lay off.
Sure, it isn't the employment blood bath like the 2002 - 2010 period [[in other words, if you have a good paying job, it's pretty secure), but it's still difficult for people to *find* a good paying and secure job.
The point of the story is that housing is most affordable and undervalued in Detroit. Sounds like we have a confidence or perception problem rather than resource or financial. Could explain why investors are leaping in turning the city into a rental haven
Right... More renters than owners, can't be a good thing.Quote:
Originally Posted by SammyS
Quote:
Originally Posted by enio
Depends on the car. A significant number of fairly basic 'cars' are well over $30K now which is just plain silly. Can you even buy a NEW car for under $20K?
Houses in Detroit have always been available in that same $20-$30K range. Decent, well-built houses too. Over $50K was kind of expensive.
The diversity of what's available in the city offers more opportunities than can be readily found elsewhere. Smart buyers are being rewarded and currant sold prices reflect that fact.
This one is interesting. Boston Edison has seen a sharp increase in realized prices and more than its share of restorations lately. I assume it needs a complete reconstruction but it is in a improving neighborhood and a stones throw from Voigt Park. Not a good candidate for a rental but a solid opportunity for the right buyer who wanted to do the work themselves and build serious equity.
http://www.realtor.com/realestateand...2_M34935-18874